Entrepreneurs and Celebrities Use Kickstarter for Funding
Entrepreneurs and Celebrities Use Kickstarter for Funding
Kickstarter has been a successful crowdfunding option for potential entrepreneurs to garner cash. However it has not been without some issues. According to The Wall Street Journal article The Trouble With Kickstarter, “The only thing worse than having to watch your friend’s arty movie is having to pay for it too.” Aside from the problems associated with pestering friends to donate, there have been some successful ventures thanks to this site. The following list contains some of names of celebrities who have used the site:
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Problems with Crowdfunding
Crowdfunding occurs when people network through the internet to raise money to support other people’s ideas or interests. Crowdfunding became popular when Obama signed the JOBS Act bill in April. Since then, sites like Fundable and Kickstarter have garnered media attention. Not all information about crowdfunding has been positive. The Harvard Business Review’s article The Road to Crowdfunding Hell explained some of the problems associated with the process.
The Wall Street Journal’s article Crowdfunding Efforts Draw Suspicion contains some of the latest problems. The SEC was supposed to review the rules for crowdfunding by January 1. They missed this deadline. In the meantime there may be some people who have taken advantage of the situatoin. “State regulators already have taken or considered enforcement action against a handful of companies for allegedly exploiting online fundraising to commit fraud—or simply jumping the gun on the planned rules changes.”
There have been a large number of websites dedicated to crowdfunding. Over 9000 sites include the word in their website name. “Crowdfunding enthusiasts say the number of websites being registered reflects the pent-up demand for the financing targeted by the JOBS Act.”
The concern is that there is a lot of interest without a lot of control. “The association of securities regulators says the JOBS Act doesn’t do enough to protect investors.” Crowdfunding Insider claims Education is the Best Weapon Against Crowdfunding Posers.
The following video explains:Â The JOBS Act and its impact on crowdfunding.
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Entrepreneurs: Funding Options from Kickstarter
Entrepreneurs often find that one of the hardest parts of realizing their dream is to obtain financing. Some have tried microlending sites like Kiva.org. Others have discovered a new lending platform called Kickstarter. The site’s tagline is “a new way to fund and follow creativity.”
Kickstarter describes its site as the world’s largest funding platform for creative projects. This unique site allows entrepreneurs to keep ownership and control over their work while tens of thousands of people pledge millions of dollars to help finance their creative ideas. The idea must reach its funding goal or no money changes hands. Entrepreneurs that receive their anticipated funds, can test concepts without risk.
Kickstarter’s Blog offers advice to those interested in creating a new project. The site allows for people to browse current ideas or to create their own. To begin a new project dedicated to film, art, technology, design, food, publishing and more, creators can check out Kickstarter school.
Once a project is listed on the site, it displays timeline and pledge information including: Percent Funded, Amount Pledged, Number of Days Left to Receive Funds. The picture displayed below demonstrates some examples listed on Kickstarter’s site. On the site’s curated page, it lists “projects curated by some of the world’s foremost creative communities.” The site also allows users to view projects by staff picks, most popular, recently launched, ending soon, small projects, most funded, as well as by category and location.
For additional help with the entrepreneurial process, check out the Top 30 Links for the Successful Entrepreneur. Â
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